Refinance Rates for Oct. 19, 2022: Rates Trend Higher

Both 15-year fixed and 30-year fixed refinances saw their average rates rise. The average rate on 10-year fixed refinance also made gains.

Like mortgage rates, refinance rates fluctuate on a daily basis. With inflation at a 40-year high, the Federal Reserve has hiked the federal funds rate five times in 2022 to try to slow surging inflation.

Though mortgage rates are not set by the central bank, its rate hikes increase the cost of borrowing money and eventually impact mortgage and refinance rates and the broader housing market. Whether refinance rates will continue to rise or fall will depend largely on how things play out with inflation. If inflation cools, rates will likely follow suit.

But if inflation remains high, we could see refinance rates maintain their upward trajectory. If rates for a refi are currently lower than your existing mortgage rate, you could save money by locking in a rate now. As always, consider your goals and circumstances, and compare rates and fees to find a mortgage lender who can meet your needs.

30-year fixed-rate refinance

The average 30-year fixed refinance rate right now is 7.14%, an increase of 7 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) Refinancing to a 30-year fixed loan from a shorter loan term can lower your monthly payments.

Because of this, a 30-year refinance can be a good idea if you’re having trouble making your monthly payments. In exchange for the lower monthly payments though, rates for a 30-year refinance will typically be higher than 15-year and 10-year refinance rates. You’ll also pay off your loan slower.

15-year fixed-rate refinance

The average rate for a 15-year fixed refinance loan is currently 6.41%, an increase of 7 basis points over last week.

A 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan. However, you’ll also be able to pay off your loan quicker, saving you money over the life of the loan. Interest rates for a 15-year refinance also tend to be lower than that of a 30-year refinance, so you’ll save even more in the long run.

10-year fixed-rate refinance

For 10-year fixed refinances, the average rate is currently at 6.49%, an increase of 12 basis points over last week.

A 10-year refinance will typically feature the highest monthly payment of all refinance terms, but the lowest interest rate. A 10-year refinance can be a good deal, since paying off your house sooner will help you save on interest in the long run. However, you should analyze your budget and current financial situation to make sure you’ll be able to afford the higher monthly payment.

Where rates are headed

At the start of the pandemic, refinance rates dropped to historic lows, but they have been steadily climbing since the beginning of 2022.

The Fed recently raised interest rates by another 0.75 percentage points and is poised to raise rates again to slow the economy. Though it’s unclear exactly what will happen next, if inflation continues to rise, rates are likely to climb. If inflation eases, rates could level off and begin to decline.

We track refinance rate trends using information collected by Bankrate, which is owned by CNET’s parent company. Here’s a table with the average refinance rates supplied by lenders nationwide:

Average refinance interest rates

Product

Rate

A week ago

Change
30-year fixed refi 7.14% 7.07% +0.07
15-year fixed refi 6.41% 6.34% +0.07
10-year fixed refi 6.49% 6.37% +0.12

Rates as of Oct 19, 2022.

How to find the best refinance rate

It’s important to understand that the rates advertised online may not apply to you. Your interest rate will be influenced by market conditions as well as your credit history and application.

Having a high credit score, low credit utilization ratio and a history of consistent and on-time payments will generally help you get the best interest rates. You can get a good feel for average interest rates online, but make sure to speak with a mortgage professional in order to see the specific rates you qualify for. To get the best refinance rates, you’ll first want to make your application as strong as possible.

The best way to improve your credit ratings is to get your finances in order, use credit responsibly and monitor your credit regularly. Don’t forget to speak with multiple lenders and shop around. Refinancing can be a great move if you get a good rate or can pay off your loan sooner — but consider carefully whether it’s the right choice for you at the moment.

Is now a good time to refinance?

In order for a refinance to make sense, you’ll generally want to get a lower interest rate than your current rate.

Aside from interest rates, changing your loan term is another reason to refinance.When deciding whether to refinance, be sure to take into account other factors besides market interest rates, including how long you plan to stay in your current home, the length of your loan term and the amount of your monthly payment. And don’t forget about fees and closing costs, which can add up. As interest rates have steadily increased since the beginning of the year, the pool of refinancing applicants has shrunk significantly.

If you bought your house when interest rates were lower than current rates, you may likely not gain any financial benefit from refinancing your mortgage.

Tags:

create-and-craft listed on couponmatrix.ukdaysoutcom listed on couponmatrix.ukevans listed on couponmatrix.ukholiday-taxis listed on couponmatrix.ukrituals listed on couponmatrix.ukspotify listed on couponmatrix.uk
create-and-craft listed on couponmatrix.ukWhen it comes to flexing your creative muscles, Create and Craft has everything you need for a real workout. From scissors and glue to needles and thread, whatever you need you can find it for less with a Create and Craft discount code, so there’s never been a better time to get creative. With lots of great products on offer at incredible prices, Create and Craft is an absolute emporium for arts and crafts.
daysoutcom listed on couponmatrix.ukHalf-term adventures, unforgettable dates and city staycations start with a visit to daysout.com, where you can find things to do anywhere in the UK. Whether it’ll be London, Birmingham or Edinburgh on the cards, make it a day to remember with affordable tickets for you and the family – our Days Out discount codes can save you money at with Madame Tussauds, the London Dungeon, SEA Life Birmingham, the Magical London Pass and much more. From theme parks and zoos to historical attractions and interactive experiences, there’s no better place than daysout.com for heaps of inspiration and tips for a cheap day out.
evans listed on couponmatrix.ukEvans have been around for a long time – since 1930 in fact – but they have never compromised on their commitment to bring the best in flattering, comfortable and stylish clothing. As one of the UK’s premier destinations for plus sized woman’s clothing, Evans offers a wide range of fashion products so that you can always look your very best. You can now look forward to enjoying quality clothing for even less thanks to your Evans discount code. With shops on the high street and an expansive online catalogue, you’ll always be able to find an outfit to complement your curves.
holiday-taxis listed on couponmatrix.ukGetting to your dream destination has never been easier than by booking with Holiday Taxis. With airport to city and resort transfers in over 21,000 destinations worldwide, you can arrive in style with their range of taxis, minibuses, limousines and even helicopter transfers to give you the star treatment you always knew you deserved. You can even use your Holiday Taxis discount code on same-day transfers to ensure you’re never late for your flight again.
rituals listed on couponmatrix.ukLife is made up of little things. That's why Rituals provides you with beauty products, skincare and fragrances derived from sources all over the Eastern world. With ranges including, the Happy Buddha, Dao, Karma, Cleopatra and many more, you can enjoy a sensuous and incredible start to every day. With Rituals discount codes you can enjoy the product range for less. Love feeling your best with the help of the Rituals range.
spotify listed on couponmatrix.ukThe days of carting around stacks of CDs or downloading song-by-song are long gone. Spotify is a music lover’s dream, granting access to millions of albums and podcasts directly from the Spotify app. Whether you prefer your guilty pleasures, learning something new or creating public playlists, there’s so much to enjoy about this music subscription service. Unlock Spotify Premium for less with student or family accounts, and by making the most of Spotify discount codes from Groupon.